Everyone knows Netflix. You watch almost all of your favorite shows on the platform. Since its founding in 1997, it slowly built its roots around streaming until it became the platform that most people can’t live without. It now has over 83 million users and is the first of its kind as an on-demand platform.
Netflix is popular because it fits right into the lifestyle of many. Unlike TV shows with set times that many people may miss because of certain work or life conditions, Netflix offers an easier way to enjoy dramas or TV series. However, it’s great to ask how they did it. This article will explore how Netflix segments or positions itself within the current digital market.
In this article
Overview of Netflix
Netflix started in 1997. However, there was no way to make a streaming platform back then. So, their main business was to provide a DVD rental service by mail. Over time, it evolved into what people know it to be now.
To begin understanding Netflix’s segmentation, targeting, and positioning, you can take a look at where it is now, so you have a base point for everything else:
| Aspect | Details |
| Founded | 1997, by Reed Hastings and Marc Randolph |
| Headquarters | Los Gatos, California |
| CEO | Greg Peters |
| Annual Revenue | $39.001B (2024) |
| Market Cap | $511.88 Billion USD |
| Key products | Streaming services and original content with a subscription-based model |
| Latest growth | 15.9% YoY increase from 2023 to 2024 |
| Official website | www.netflix.com |
Netflix stands out because it uses the segmentation, targeting, and positioning strategy. It’s a way for the company to properly identify its customers and come up with ways to cater to them and get more people on their subscription platform.
Market Segmentation of Netflix
Netflix’s segmentation begins with dividing the market into smaller groups. Netflix’s business department constantly looks for change signals, focusing on innovation and shifts in how people watch content. For example, a survey by Hannah found that over 2.7 million Australians use Netflix for movies and TV shows.
Like Tesla, which started by selling high-end cars before moving toward broader affordability, Netflix segments its audience by demographics, behavior, and psychographics. Age, income, location, and lifestyle influence what people want to watch. Some segments focus on price and accessibility, while others look for quality and exclusive titles.
Targeting of Netflix
Once the market is segmented, Netflix’s targeting follows. The current data is that Netflix has over 100 million subscribers who watch 125 million hours of movies, shows, documentaries, or other forms of content daily from the app. Since it has users across 190 countries, it has to be really specific with its targeting. Thus, it analyzes people’s preferences and creates or offers content based on culture, interest, etc.
What makes Netflix unique is its use of behavioral segmentation. The platform learns from users’ viewing habits through machine learning algorithms and groups them accordingly. This allows Netflix to personalize recommendations and keep viewers engaged with a steady stream of content tailored to them.
Positioning of Netflix
Finally, Netflix’s positioning defines how it wants to be seen. Netflix initially positioned itself as a premium, on-demand entertainment provider. Before, it only offered a single-subscription model. Recently, though, it considered lower-income market positions by providing mobile-only streaming through its official app. This makes it much cheaper, especially for users who only watch from a single device.
Thus, it can be gleaned from Netflix’s current moves that it’s trying to reposition itself as the subscription service everyone uses for streaming shows and movies. Netflix is now deeply ingrained in pop culture and modern lifestyle. While many other streaming platforms are also emerging, nothing beats the **name recall** that Netflix has.
How To Make a Netflix Segmentation, Targeting, and Positioning Mind Map
Now that you more or less understand Netflix’s segmentation, targeting, and positioning practices, it’s time to put them into mind maps. Why, you may ask? Well, the wisdom of a mind map lies in its ability to synthesize information into digestible pieces and show its user the connection between them. Thus, if you’re studying Netflix’s market positioning, making a mind map to improve your retention is a great idea.
Besides, mind maps can be easily presentable. So, if you plan to present your findings on Netflix’s market practices, it’s best to use one as well.
Use a Professional Segmentation, Targeting, and Positioning Mind Map
It’s best to use a professional tool, like Wondershare EdrawMind, to make mind maps. This is an **all-in-one diagramming tool** with features that simplify your mind mapping. Built upon the principles of WYSIWYG editors, EdrawMind lets you focus on creativity and information mapping rather than formatting and design.
As discussed, you can use mind maps to present information to audiences, such as Netflix’s market analysis. The great thing about EdrawMind is that if you don’t want to use a mind map, it has a built-in **PPT mode** that converts your mind map to a beautiful presentation.
On top of this, you can also enjoy **AI tools** like mind maps and image generators. It even has a built-in chatbot that can assist you with things that require knowledge.
Steps To Make a Netflix Segmentation, Targeting, and Positioning Mind Map
Here’s a quick step-by-step on making a Netflix segmentation, targeting, or positioning mind map within EdrawMind.
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Step 1: Change the main idea node to the company’s name. In this case, it should be “Netflix Target Market,” or something like “Netflix Market Segmentation.”
Step 2: Add the main branches through the subtopic tool. You can add further subtopics to expand the ideas even more.
Step 3: After placing the structure, you can customize it with colors, icons, text styles, and themes.
Step 4: Share the mind map with your friends in PDF format or use it in a document in image formats like PNG or JPG.
Tips To Make a Segmentation, Targeting, and Positioning Mind Map
As you create mind maps, you’ll notice that it’s a simple way to organize ideas around segmentation, targeting, and positioning (STP). As described above, you should put the company name in the middle, then make branches for segmentation, targeting, and positioning. Here are some tips you can follow when making the idea branches for each:
- For Segmentation, break the branch into categories like **demographics**, **psychographics**, **geography**, and **behavior**. Add examples such as age, income, interests, or viewing habits. This helps visualize the different ways a company divides its market.
- For targeting, create branches that show how businesses choose which groups to serve. You can add sub-branches for strategies such as **mass marketing**, **niche marketing**, or **multi-segment marketing**. Including real examples—like Netflix using **algorithms** to personalize content—makes the map more useful.
- For Positioning, focus on how a brand wants to be seen. Branches here can include **price**, **quality**, **accessibility**, and **uniqueness**. Adding examples such as “premium,” “affordable,” or “everyday essential” will clarify positioning choices.
FAQ
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1. Why does Netflix invest heavily in original content?
Original content is part of how Netflix builds its brand. Titles like **Stranger Things** and **Squid Game** make the platform stand out and give people a reason to subscribe. This is part of Netflix’s attempt to stand out in the market where many streaming services are already popping up. -
2. How does Netflix adapt its strategy for different regions?
Netflix changes both content and pricing based on region. For example, they launched a cheaper **mobile-only plan** in India in 2019, which was quickly followed by Southeast Asian countries in 2020. It also invests in local productions such as **Sacred Games** or the Spanish hit **Money Heist**. This mix helps it connect with varied audiences. -
3. What role does technology play in Netflix’s customer strategy?
Technology drives most of Netflix’s customer strategy. Its **recommendation system** learns from what people watch and suggests similar titles. Beyond that, data helps Netflix decide which new shows to fund, ensuring investments match audience demand.
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